Burberry to move more upmarket
Burberry has reported 4% increase in first half like-for-like sales as it announced plans to drive its brand positioning further upmarket.
In the six months to 30 September, adjusted operating profit rose by 17% on an underlying basis to £185 million.
Marco Gobbetti, Burberry chief executive, said: "I am pleased with our performance in the half with strong double-digit underlying profit growth. Consumers responded positively to fashion and newness, particularly in rainwear and leather goods. Digital revenue grew in all regions, led by mobile, while growth was strongest in our own stores in Asia Pacific."
The company has also announced plans to sharpen its brand positioning as it looks to sit firmly in the luxury market. It will be changing its approach to its product, communication and customer experience. This will involve building its offer to provide a complete look for customers, while simplifying its ranges, transforming the in-store experience by refurbishing its stores, and enhancing its luxury service.
Gobbetti said: "Now is the right time for Burberry to implement the next phase of its transformation. By re-energising our product and customer experience to establish our position firmly in luxury, we will play in the most rewarding, enduring segment of the market. We have the foundations to build on and the team to execute our plans. This will enable us to drive sustainable growth and higher margins over time, whilst continuing to deliver attractive returns to shareholders."
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